ETF Versus

QQQ vs XLK

Invesco QQQ Trust vs State Street Technology Select Sector SPDR ETF

Last updated: 2026-04-10

QQQ Invesco

Invesco QQQ Trust (QQQ) is an exchange-traded fund issued by Invesco that provides exposure to large-cap U.S. growth stocks with above-average earnings potential. It charges a moderate expense ratio of 0.18%. The fund offers a modest dividend yield of 0.46%. Launched in 1999, the fund has a 27-year track record.

AUM: $389.6B ER: 0.18% Yield: 0.46% Since: Mar 10, 1999
XLK SPDR

State Street Technology Select Sector SPDR ETF (XLK) is an exchange-traded fund issued by SPDR that provides exposure to us sector - technology securities. It charges a low expense ratio of 0.08%. The fund offers a modest dividend yield of 0.54%. Launched in 1998, the fund has a 28-year track record.

AUM: $90.3B ER: 0.08% Yield: 0.54% Since: Dec 16, 1998

Quick Verdict

XLK is significantly cheaper at 0.08% vs 0.18% expense ratio, saving you approximately $198 per $10,000 invested over 10 years. Over the past year, XLK has significantly outperformed with a 46.8% return vs 37.0%.

Key Metrics

Metric QQQ XLK
Expense Ratio 0.18% 0.08%
Dividend Yield 0.5% 0.5%
Fund Family Invesco SPDR
Category US Large Cap Growth US Sector - Technology

Performance Chart

Indexed to 100 at start (5-year comparison)

75 103 131 159 187 215 2021-04 2022-07 2023-10 2025-01 2026-04
QQQ +81.6%
XLK +102.2%

Performance Comparison

Period QQQ XLK Difference
1 Month +0.58% +1.60% -1.02%
3 Months -2.54% -2.80% +0.26%
6 Months +1.53% +0.06% +1.47%
YTD -0.31% -1.13% +0.82%
1 Year +36.99% +46.81% -9.82%
3 Years +93.53% +93.34% +0.19%
5 Years +81.55% +102.25% -20.70%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period QQQ Fees XLK Fees You Save
$10,000 10 years $357 $159 $198
$10,000 20 years $1,529 $686 $844
$10,000 30 years $4,912 $2,212 $2,699
$50,000 10 years $1,786 $797 $989
$50,000 30 years $24,558 $11,061 $13,497
$100,000 30 years $49,116 $22,123 $26,993

Risk Metrics

Based on 5 years of daily returns

Metric QQQ XLK
Annualized Volatility 22.4% 24.7%
Max Drawdown -35.6% -34.0%
Sharpe Ratio 0.45 0.51

Dividend Comparison

Metric QQQ XLK
Annual Dividend (per share) $2.81 $0.77
Dividend Yield 0.46% 0.54%
Distribution Frequency Quarterly Quarterly

Top Holdings

4 of top 9 holdings overlap (44% overlap in top holdings)

QQQ Top Holdings

NameWeight
NVIDIA CorporationNVDA8.69%
Apple Inc.AAPL7.47%
Microsoft CorporationMSFT5.55%
Amazon.com, Inc.AMZN4.61%
Tesla, Inc.TSLA3.47%
Meta Platforms, Inc.META3.41%
Alphabet Inc.GOOG3.32%
Walmart Inc.WMT3.32%
Broadcom Inc.AVGO3.18%

XLK Top Holdings

NameWeight
NVIDIA CorporationNVDA15.30%
Apple Inc.AAPL13.10%
Microsoft CorporationMSFT9.49%
Broadcom Inc.AVGO5.76%
Micron Technology, Inc.MU3.96%
Advanced Micro Devices, Inc.AMD3.22%
Cisco Systems, Inc.CSCO2.74%
Lam Research CorporationLRCX2.69%
Applied Materials, Inc.AMAT2.63%
Palantir Technologies Inc.PLTR2.49%

Which One Should You Choose?

Choose XLK if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose XLK if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

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